The closures by Amplats, as the Anglo American Plc (AAL) unit is
known, will cut output by 400,000 ounces a year, it said in a
statement today, as much as 19 percent of production.

The shutdowns may affect 13,000 jobs in Rustenburg, a
region where at least 46 people were killed in mine-related
violence last year. Amplats said it intends to create as many
jobs as it cuts and starts 60 days of talks with labor unions
today. Platinum erased an earlier decline as Amplats announced
the shaft closures, with futures for April delivery climbing 1.4
percent to $1,680.50 an ounce, the highest since Oct. 9, by 8:57
a.m. in Johannesburg.

“The company has to take drastic and significant actions
to save the company,” Chief Executive Officer Chris Griffith
said on a conference call.

The stock rose as much as 1 percent to 496 rand in
Johannesburg trading, after earlier dropping 0.6 percent.

Loss Forecast

Amplats said yesterday it would post a loss for 2012
because of walkouts by mineworkers that cut output by 306,000
ounces. A wave of strikes over pay that started at South African
platinum mines and spread to gold, iron-ore, diamond and coal
producers cut mining output by 10.1 billion rand ($1.2 billion),
costing tax revenue, exports and jobs, according to the National
Treasury.

The company plans to create 14,000 jobs focused on housing
and small business development in areas including Rustenburg,
“an equivalent number of jobs to those that may be affected by
the restructuring,” Amplats said. The producer had 58,541
employees, according to the company’s annual report.

“Anglo American recognises the potential impact of these
proposals on our people and their communities,” Cynthia Carroll, the departing Anglo chief executive officer, said in
the statement. She ordered the review in February. Amplats has
“identified the optimal mining configuration” to improve
profitability and performance, Carroll said.

The reorganization will cost an estimated 3.2 billion rand,
with retrenchments accounting for 1.2 billion rand of that,
Finance Director Bongani Nqwababa said on the conference call.

The platinum producer trimmed its annual output target to
2.1 million to 2.3 million ounces. The company plans to cut
capital expenditure by 25 percent in the next decade to 100
billion rand, it said.

Union Mines

The company plans to reconfigure its Rustenburg operations
by shutting the Khuseleka 1 and 2 and Khomani 1 and 2 shafts,
cutting output by 320,000 to 350,000 ounces a year across three
operating mines in the area, it said. Amplats said it will
divest its Union mines “at the right time.”

Anglo American this month appointed Mark Cutifani as CEO
after losing $14 billion of market value under Carroll. Anglo
owns 79.8 percent of Amplats, it said in a statement today.

South African mines shut nine platinum shafts and dismissed
3,332 workers in the six months ended December, the Minister of
Mineral Resources Susan Shabangu said in a written reply to
questions in parliament Dec. 2.